Germany’s Biggest Bank Owns More In Derivatives Than 20X The Size Of Germany

Deutsche Bank1

Holy shit. The green bar above is the entire GDP of Germany. The blue is the entire GDP of the Eurozone. The red is Deutsche Bank’s current derivative exposure. Isn’t that nice?

Let’s put this in perspective. Germany is considered, probably correctly, Europe’s strongest economy. Deutsche Bank is the largest bank in Europe, and the argument could be made that it’s the largest bank in the world, since it has more derivative exposure than even America’s most exposed bank, JP Morgan. Europe’s economy is problematic to say the last, and Deutsche  Bank keeps dumping stock to keep up with everything. Continue reading →

Bureaucracy Always Wins

Alan Weiss describes yet another example of how the entire US healthcare system is a ripoff.

We’ve just received a bill this month from the hospital–where the care was superb–telling us that of the $125 cost of the walker, insurance paid for everything but $12.94, so would we please remit. I think you can see that it’s costing the hospital about $100 or more to collect their $12.94, and it probably cost Medicare more than $125 to reimburse the hospital partially.

A cost of $125 really ends up costing the government and the patient $300 or more. Continue reading →

American Taxpayers Bail Out Rich Bankers In Ukraine

It never ends. Congress just fast-tracked $1 billion of American taxpayer cash to bail out Ukraine. But as usual, the money isn’t going where you think it is

Not a single needy Ukrainian will see a penny of this money, as it will be used to bail out international banks who hold Ukrainian government debt. According to the terms of the International Monetary Fund (IMF)-designed plan for Ukraine, life is about to get much more difficult for average Ukrainians. The government will freeze some wage increases, significantly raise taxes, and increase energy prices by a considerable margin. Continue reading →


One of my investments is in gold. You may think gold is a great investment or a terrible one, but that’s not what I’m talking about today.

Rather, I just learned something very interesting. Here’s a few facts you probably didn’t know about gold:

1. It would take just three and a half Olympic-sized swimming pools to hold all the gold ever mined out of the earth, EVER, in all of human history. That’s it. That’s all the gold held by human beings on the entire planet. Amazing isn’t it? Continue reading →

The Top 10 Freest Countries In The Word

free countries

The Index of Economic Freedom has just released its 2014 numbers, ranking all the countries in the world based on the overall freedom level of their citizens.

The criteria they use are rule of law (property rights, lack of corruption), limited government (government spending, government waste, tax rates, etc), regulatory efficiency (business, labor, and monetary freedoms, how easy it is to start a business, etc), and open markets (tariffs, trade freedom, financial freedom, etc).

Here are the top ten most free countries in the world: Continue reading →

American Healthcare Is Designed To Be Expensive

medical costs

Old people already well aware of what a ripoff the healthcare system is, but more and more young people are finding out just how expensive healthcare in the U.S. can be. He stayed in the hospital for 24 hours, then received a bill for $55,029.31. “Fortunately” his insurance company paid $43,909.78, leaving this 20 year-old with a bill for “just” $11,119.53.

Just the cost for “room and board” for one night was $4,878, and this doesn’t include medical supplies, which was another $6,428.75. Continue reading →

Carls Jr. Has A Problem

Soon their “Six-Dollar Burger” will literally be six dollars. I saw the menu the other day and it’s up to $5.79.

Thanks to the government’s printing of money and inflation, Carl’s Jr is going to have to change it’s entire marketing campaign soon.

Circus Analogy of Economics

Several Austrian economists including guys like Peter Schiff have used what is now called the circus analogy. It goes something like this.

A big traveling circus comes to a small town. All the circus people go have regular breakfast, lunch, and dinner at one of the town’s restaurants.

The owner of the restaurant is ecstatic. He get mountains of new businesses from the vast amount of circus folk eating at his restaurant. The problem is, he’s a moron. He assumes that all this new business is permanent and will never go away. He completely misinterprets the situation. Continue reading →

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